Bombardier, Deere to Make New Vehicles

Published 12:31 pm, Monday, April 25, 2016

Transportation giant Bombardier Inc. and utility vehicle maker Deere & Co. say they will develop all-terrain and other types of vehicles under an alliance announced Thursday.

Under the alliance, Bombardier's recreational products division, which makes four-wheel all-terrain vehicles, and Deere's commercial and consumer equipment division will combine efforts to make new products aimed at expanding the business opportunities for both companies.

No financial details of the alliance were disclosed.

Combining their efforts, the first product the alliance will build is a line of new John Deere-branded utility vehicles based on Bombardier's all-terrain vehicle platform.

The new vehicles, to be built at Bombardier's Valcourt plan, are expected to be launched in Canada and the United States by the end of 2003.

"Pooling our resources with a market leader such as Bombardier strengthens our total investment in research and development," said John Jenkins, president of the commercial and consumer equipment division at Deere.

Bombardier has been making utility and motorized recreational vehicles, such as snowmobiles and ATVs, and watercraft including Sea-Doos, for over 60 years. Deere makes utility vehicles such as riding lawnmowers and tractors, along with equipment for the construction and forestry industries.

"Bombardier is very proud of this agreement because it is the recognition, by a highly reputed global leader such as Deere & Co., of the quality of our products and of our leadership position as an innovator," said Jose Boisjoli, president of the snowmobiles, watercraft and ATV division of Bombardier recreational products.

Shares in Bombardier rose 17 Canadian cents to 5.96 Canadian dollars ($3.84) in trading Thursday on the Toronto stock market. Deere stock fell 24 cents to $42 on the New York stock market.